Core Viewpoint - Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. is set to go public on June 13, aiming to raise 694 million yuan for projects related to high-end adhesives and composite materials for new energy and power batteries, as well as to repay bank loans [1] Group 1: Company Overview - Established in 2015, Daoshengtianhe initially focused on importing wind turbine blade materials but has since transitioned to self-research and development, specializing in high-performance thermosetting resin materials [2] - The company has achieved a 99.96% self-produced product ratio, with its core wind power products covering key raw materials for blade manufacturing, which account for over 56% of the wind turbine blade cost [2][3] - Daoshengtianhe has become one of the largest producers of epoxy resin for wind turbine blades globally, with its products recognized for quality and performance [3] Group 2: Financial Performance - The company reported revenues of 3.436 billion yuan in 2022, 3.202 billion yuan in 2023, and 3.238 billion yuan in 2024, with a notable increase in revenue from the new energy vehicle and industrial adhesive business, growing from 58.63 million yuan in 2022 to 200.22 million yuan in 2024 [4] - The gross profit margin improved from 10.77% in 2022 to 11.58% in 2024, indicating enhanced profitability, with net profits of 108 million yuan, 152 million yuan, and 155 million yuan during the same period [4] Group 3: Customer and Market Strategy - Daoshengtianhe has established strong partnerships with leading companies in the wind power sector, including major turbine manufacturers, ensuring a diversified customer base [5][6] - The company is expanding its market presence internationally, having achieved supplier certification with major global wind turbine manufacturers and actively pursuing opportunities in the Indian market [7] Group 4: Industry Trends and Policy Support - The Chinese wind power industry is experiencing rapid growth, with new installed capacity reaching 79.82 GW in 2024, representing 65.66% of global additions, supported by favorable green finance policies [8] - The government's long-term support for renewable energy development provides a solid foundation for the industry, with clear targets set for future wind power capacity [8] Group 5: Technological Advancements - Daoshengtianhe is focused on overcoming technological bottlenecks in high-performance polymer materials, particularly in carbon fiber applications, which are critical for the wind power and aerospace sectors [10] - The company has made significant progress in producing high-performance pultrusion resins for carbon fiber, supporting the trend towards larger wind turbines and achieving aviation-grade certification for its carbon fiber prepreg products [10]

Core Viewpoint - The company, Dao Sheng Tian He, is facing significant challenges in its IPO journey due to concerns over profitability, governance, and research and development capabilities, despite holding a leading position in the wind power blade epoxy resin market globally [1][9]. Financial Performance - The company's revenue from 2022 to 2024 shows fluctuations, with figures of 3.436 billion, 3.202 billion, and 3.238 billion yuan respectively, while net profits were 108 million, 152 million, and 155 million yuan [2][3]. - The operating income for 2024 is projected at 3.238 billion yuan, with a net profit of 155 million yuan, indicating a stagnation in profit growth despite revenue increases [3][9]. - The company has a high dependency on government subsidies, which accounted for 5.74%, 11.95%, and 11.75% of total profits from 2022 to 2024, raising concerns about the sustainability of its profitability [4]. Customer and Supplier Concentration - Dao Sheng Tian He has a high customer concentration, with the top five customers accounting for 68.19% to 72% of sales from 2022 to 2024, which poses risks to long-term stability [10][11]. - The company also relies heavily on a few suppliers, with the top five suppliers making up 50.61% to 69.60% of total procurement, indicating a lack of bargaining power [10][12]. Research and Development - The company's R&D expenditures from 2022 to 2024 were 94.07 million, 102 million, and 87.69 million yuan, with R&D as a percentage of revenue decreasing from 3.18% to 2.71%, suggesting insufficient investment in innovation [8][9]. Governance and Compliance Issues - Dao Sheng Tian He has faced internal governance challenges, including disputes over shareholding and compliance with disclosure regulations, which could hinder its IPO process [17][21]. - The company has been involved in litigation related to its operations, which raises concerns about its operational stability and transparency [18][19]. Market Position and Future Outlook - Despite its current challenges, the company is positioned to benefit from the government's focus on green and low-carbon development initiatives, which could provide new opportunities for growth in the renewable energy sector [22].